Edison International : Business Update
EIX
Published on 04/29/2026 at 07:50 am EDT
APRIL 28, 2026
Focused on opportunities in clean energy, advancing electrification, building a modernized and more reliable grid, and enabling customers' technology choices
One of the nation's largest electric-only utilities, with over 5 million customer accounts in 50,000 square-mile service area
EIX's principal subsidiary, with $38-41 billion electric infrastructure investment opportunity from 2026 through 2030
Growth driven by investment in strengthening and modernizing the grid and advancing California's aggressive climate goals
Wires-focused rate base, with limited power generation ownership (<20% of power delivered from owned generation)
Partners with large commercial, industrial, and institutional organizations to navigate the energy transition by providing integrated energy management and sustainability solutions
Clients include 48 of the world's largest companies
Constructive California and Federal regulatory structures
Aggressive climate goals met with
Decoupling of sales
Forward-looking ratemaking
California GHG reduction
Wildfire prudency standard
clean, efficient, economywide electrification
Significant investment required to ensure the grid is reliable, resilient, and ready for widespread electrification
Investment in electric-led clean energy future results in strong rate base and dividend growth
Helping customers make clean energy choices
Address wildfire risk and climate adaptation needs Infrastructure replacement
Electrification infrastructure
~7% 2025-2030 rate base CAGR
Target dividend payout of 45-55% of SCE core earnings
Revenue Decoupling Long-standing regulatory mechanism that breaks the link between retail
means earnings aren't electricity sales and revenue; promotes energy efficiency, helps stabilize customer affected by changes in bills, and supports environmental goals
electricity sales Changes in sales only affect timing of cash collection
Balancing Accounts SCE has several balancing accounts, including for variances in sales volume, such allow SCE to collect and as those related to weather
refund differences to Fuel & purchased power recovered on forecast basis, with over/under-collections authorized revenue trued-up via balancing accounts
Forecast Ratemaking Four-year GRC cycle with forward-looking test year and attrition year increases reduces regulatory lag CPUC has historically authorized mechanism that gives SCE opportunity to offset
some inflationary price increases
Cost of capital proceedings on three-year cycle separate from GRC with mechanism to reasonably adjust cost of capital if market conditions change significantly during cycles
Southern California Wildfires Document Library
(including ESIRs and Section 315 letters)
Wildfire Mitigation
SCE Wildfire Safety Webpage
Wildfire Mitigation Plan & Related Documents Vegetation Management
AB 1054 and SB 254-Related
SB 254 (2025) & Natural Catastrophe Resiliency Study AB 1054 (2019) & SB 599 (2022)
SCE Safety Certification
Wildfire Insurance Fund
Situational Awareness
Weather Stations Wildfire Cameras PSPS Information PSPS Decision Making
Role of Weather in PSPS
Other
Edison for the Record Map of SCE's Service Area
Stories and Videos on SCE's Wildfire Mitigation Efforts and PSPS
1. This page contains links to third-party websites, provided for the convenience of investors. Direct links to documents and information issued by third parties are provided on this page should not be construed as an endorsement or adoption of or an agreement with such content by Edison International or SCE. Third-party content is the responsibility of the third-party, and Edison International and SCE disclaim all liability for any statements made in such third-party content
Distribution hardening
Additional 700+ miles of covered conductor and targeted undergrounding
Public Safety Power Shutoffs (PSPS)
Last-resort tool to prevent ignitions during extreme weather; focused on reducing impacts
Transmission hardening
Enhanced standards and proactive upgrades to reduce ignition risk on transmission infrastructure
Situational awareness
Using weather stations, HD cameras, and forecasting to monitor and respond to wildfire risk
New technology deployment
Deploying new and expanded tools to identify and prevent ignition risks early
Vegetation management
Removing hazardous trees and maintaining clearances to prevent vegetation-related ignitions
Aerial suppression
Supporting aerial firefighting resources to improve rapid wildfire response and public safety
Refine other strategies
Continuously improving mitigation through lessons learned, modeling, and utility collaboration
Continued investment builds on ongoing efforts to reduce the risk of wildfires associated with utility equipment while applying latest learnings
OF COVERED CONDUCTOR1
TRIMS AND REMOVALS IN HFRA1
✓
✓
HFRA INSPECTIONS1
Since 2018 and as of March 31, 2026
Refers to the ignition drivers covered conductor is designed to mitigate
WEATHER STATIONS1
HD CAMERAS1
Legislation
SB 254 passed Sept. 2025
AB 1054 passed July 2019
Codified prudent manager standard
$21+ billion initial wildfire fund and $18 billion continuation account
Regulation
Wildfire Mitigation Plan Safety Certification
Substantial approved funding for wildfire mitigation
Suppression
CAL FIRE Budget: Doubled since 2017-18
CAL FIRE Staffing: >90% increase since 2017-18
CAL FIRE's fleet is the largest civil aerial firefighting fleet in the world
Creates $18Bn fund with no upfront contribution1
Funded 50/50 by customers and IOUs
- IOUs: $300MM/year for 2029-2045
plus $3.9Bn over 5 years if need determined by administrator2
Customers: $900MM/year for 2036-2045
SCE share: 47.85% (~$145MM/year starting 2029)
New fund available only for wildfires ignited after Sept. 19, 2025 (SB 254's effective date); initial fund available only for wildfires ignited before effective date1,3
Enhances framework for liability cap, claims, and financing
✓
✓
✓
Constructive for potential Eaton Fire losses
Liability cap now based on year of ignition-improving certainty of amount-rather than year of disallowance
If Wildfire Fund1 exhausted, IOU may issue securitized bonds to fund claims payments for covered wildfires ignited between Jan. 1, 2025, and Sept. 19, 20254
If required to reimburse new fund, IOU may reduce reimbursement by amount of contributions paid
Gives IOUs right of first refusal for subrogation claim sales for wildfires ignited after SB 254's effective date
Excludes $6Bn in wildfire capex from rate base
IOUs to securitize $6Bn of wildfire mitigation capital spending
(SCE share: ~$2.9Bn)5
References to "Wildfire Fund" refer to the fund established under AB 1054 in 2019; "New fund" refers to the Continuation Account established under SB 254. Funding of the Continuation Account is dependent upon a determination by the fund administrator and CPUC authorization of extending customer charges
If the administrator winds up and terminates the account before the final installment payment is paid, IOUs shall provide one-half of the remaining unpaid installment payments as rate credits to its ratepayers
Any remaining value in the Wildfire Fund rolls over to the new fund after satisfying covered wildfires
Subject to CPUC approval; SB 254 was signed by the governor on September 19, 2025, which is the effective date of the bill
Based on the assumption that SCE's share will be determined according to its allocation of the IOU contributions to the Continuation Account
Whole of society framing
Study comprehensively analyzes wildfire risk as the result of interacting forces that cannot be addressed through incremental changes to any single part of the system
Cost-of-inaction baseline
Study quantifies cost of inaction as a baseline to compare "Policy Pathways" against, presenting a call to action for the State to develop a durable way to address systemic challenges
Study presents options via three non-exclusive policy pathways for legislative consideration
1 Commit to Community Wildfire Risk Reduction
Focuses on targeted, risk-based mitigation and long-term investments to reduce losses in the highest-risk communities
2 Equitably Allocate Catastrophe Burdens
Examines options to rebalance how catastrophe costs are shared to support recovery, affordability, and system stability
3 State Roles for Addressing Catastrophe Resiliency
Evaluates expanded state participation to address financing and protection gaps not covered by existing mechanisms
Established safety certification process and additional safety oversight
Under AB 1054, SCE can obtain an annual safety certification following submission of required safety information, including an approved wildfire mitigation plan
Safety certifications valid for 12 months and remain valid until Office of Energy Infrastructure Safety acts on SCE's request for a new safety certification
Codified prudency standard and assumes utility prudency unless serious doubt created
Provided a utility is "safety certified," establishes a prudency standard that assumes utility is prudent, unless intervenors create serious doubt
Prudency based on reasonable utility conduct with potential for full or partial recovery, considering factors within and beyond a utility's control (e.g., humidity, temperature, winds)
Standard survives even if Wildfire Insurance Fund is depleted
Established $21+ billion
Wildfire Fund to enhance liquidity
Reimburses utility for eligible claims payments above $1 billion required insurance coverage2 Currently ~$14.1 billion of assets, invested ~80% Treasury/Agency and ~20% corporate securities3
Administrator recently estimated the fund's claim paying capacity for the Eaton Fire exceeds
$21 billion
Caps utility liability if found imprudent
(SCE 2025 cap: ~$4.3 Bn5)
If found prudent, no requirement to reimburse fund for claims covered by fund
If found imprudent or partially imprudent, shareholders reimburse fund up to cap
Reimbursement capped if utility has valid safety certification.4 The cap covers trailing three-year period and limits reimbursement to 20% of electric T&D equity rate base at time of ignition5
California Assembly Bill 1054, executed by the governor of California on July 12, 2019
Or amount required by fund administrator, whichever is higher
Source: California Earthquake Authority Financial Report presented at the February 5, 2026 California Catastrophe Response Council meeting
And has not been found to have acted with conscious or willful disregard of the rights and safety of others
Excluding general plant and intangibles. Liability cap calculation amended by California Senate Bill 254 (2025) to be based on year of ignition
Customers contribute $0.9Bn annually through 2035. May be directly contributed to Fund or used to support issuance of bonds by California DWR
Customers contribute non-bypassable charge
AB 1054 Wildfire Fund (Initial Account) Mechanics1
IOUs contribute $10.5 billion
PG&E: $4.8Bn initial + $193MM annually through 2028 SCE: $2.4Bn initial + $95MM annually through 2028 SDG&E: $0.3Bn initial + $13MM annually through 2028
Wildfire Insurance Fund
Covers claims payments resulting from wildfires ignited on or after July 12, 2019, either (a) caused by PG&E, SCE, or SDG&E, as determined by the governmental agency responsible for determining causation, or (b) asserted to have been caused by PG&E, SCE, or SDG&E, and results in a court-approved dismissal resulting from settlement of third-party damage claims, in excess of annual utility insurance ($1 billion)2
Claim-paying capacity of $21+ billion. Fund can securitize future contributions if necessary to capitalize the fund
Fund reimbursed if imprudent (see below right), but does not have a separate replenishment mechanism
Pay out claims to claimants subject to fund administrator approval
Subrogation claims settled at ≤40% approved unless exceptional facts and circumstances; higher amounts may be approved by fund administrator
Fund payment of "eligible claims"2
If found prudent, IOU does not reimburse Wildfire Fund
CPUC
prudency determination (serious doubt standard if utility holds safety cert.)
Liability cap of 20% of T&D Equity Rate Base (~$4.3Bn for SCE for 2025)3 unless found to have acted with conscious or willful disregard of the rights and safety of others
Liability cap lapses when fund exhausted; prudency standard remains
If found imprudent, IOU reimburses Wildfire Fund up to 3-year rolling cap
This summary is based on Edison International's interpretation of Assembly Bill 1054 (2019) and clarifications made in Senate Bill 599 (2022) and Senate Bill 254 (2025)
"Eligible claims": claims for third-party damages from covered wildfires less annual utility retention (larger of $1.0 billion or required insurance layer per fund administrator)
Excluding general plant and intangibles
Example of Wildfire Fund operations, reimbursement, and IOU liability from a hypothetical wildfire resulting in $10 billion of paid claims
$ in Billions; Example based on SCE's 2025 Liability Cap
$10 billion cost of paid claims1
(Wildfire Fund reimburses utility for claims paid above IOU insurance of $1 billion)
SCE cost recovery application and CPUC review2
(Presumption of prudence if safety certification held)
If
If
$10.0
1.0
authorized
100%
recovery1
SCE does not reimburse Fund for eligible claims above annual aggregate insurance of $1 billion
9.0
SCE's
Insurance
Utility Shareholders
Wildfire
I
nsurance
Fund
authorized
0%
recovery1
Liability cap for subsequent events over 3-year period reduced by amount reimbursed
4.7
4.3
Partial
recovery can be authorized2
1.0
$10.0
Claims typically settle at a percentage of the asserted damages
Costs in application may be allocated for cost recovery in full or in part considering factors within and beyond utility's control, including humidity, temperature, and winds
CAL FIRE's budget has doubled since 2017-18
CAL FIRE Enacted Budget by Budget Year, $ in Billions1
$3.7
$4.1
$4.2
$4.2
$2.0
$2.5
$2.9
$2.5
$2.6
$5.0
70+ aircraft make
CAL FIRE's fleet the largest civil aerial firefighting fleet
in the world2
'17-18 '18-19 '19-20 '20-21 '21-22 '22-23 '23-24 '24-25 '25-26 '26-27*
CAL FIRE's staffing has increased by >90% since 2017-18
Thousands of CAL FIRE Budget Year Positions1
12.0
12.5
13.3
14.0
6.9
7.2
7.7
8.1
8.8
11.3
'17-18 '18-19 '19-20 '20-21 '21-22 '22-23 '23-24 '24-25 '25-26 '26-27*
As initially enacted. Does not include subsequent Emergency Fund funding. *: 2026-27 is based on the Governor's proposed budget released on January 9, 2026
https://www.fire.ca.gov/what-we-do/fire-protection/aviation-program
Budgeted across departments and budget years. Portions of the funding for the Wildfire & Forest Resilience Strategy are captured within CAL FIRE's overall budget
https://www.gov.ca.gov/2025/01/13/california-forest-management-hotter-drier-climate/
State has committed $2.6 billion over 7 years3 for Wildfire & Forest Resilience Strategy
Increased use of new technology including drones, AI-powered tools to spot fires, and
advanced mapping4
Status of Currently Planned Grid Hardening in HFRA1
Distribution circuit miles, As of March 31, 2026
Remaining Planned2
(Up to
~1,030 miles)
Completed
93%
of plan
Underground
(~7,560 miles)
Covered Conductor
(7,110+ miles)
Completed Hardening
(14,670+ miles)
Refers to circuit miles of distribution infrastructure in SCE's high fire risk areas (HFRA)
Includes covered conductor and undergrounding
Investigation Status2
While SCE has not conclusively determined causation, SCE is not aware of evidence pointing to another possible source of ignition.
Absent additional evidence, SCE believes that it is likely that its
Clear funding sources mitigate balance sheet exposure from claims resolution4
1
5 Customer-funded
equipment could have been associated with the ignition of the Eaton Fire.
Based on the information it has reviewed, SCE believes that it will be able to make a good faith showing that its conduct with respect to its transmission facilities in the preliminary area of origin was consistent with the actions of a reasonable utility.
Wildfire Recovery Compensation Program Stats3
Nearly 3,150 claims submitted, consisting of almost 9,500 individuals, trusts, and legal entities
Nearly 1,500 offers extended to nearly 3,700 claimants, totaling more than $500 million
More than 735 claimants paid, totaling more than $100 million
Refers to claims for third-party damages related to the Eaton Fire eligible for reimbursement from the Wildfire Fund's Initial Account, which will be subject to approval of the fund administrator
For further details, see "Management Overview-Southern California Wildfires and Mudslides" in the 2025 10-K
As of April 27, 2026
Refers to funding sources prior to a CPUC determination of prudency. For further details, see "Management Overview-Southern California Wildfires and Mudslides" in the 2025 10-K
Customer-funded self-insurance includes a $12.5 million shareholder contribution
First $1Bn
2
Up to remaining capacity of Wildfire Fund
3
Above capacity of Wildfire Fund
self-insurance
Reimbursement from Wildfire Fund1
SB 254 provides ability to securitize6
Subject to CPUC approval. If the CPUC determines that the costs were not prudently incurred, SCE will be required to return any amounts recovered back to customers over a period that matches the remaining duration of the financing instrument through credits to customer rates
Introduction Wildfire Mitigation Electrifying the Future: Customers and Clean Energy Financial Information Appendix
100%
of retail sales served with carbon-free electricity by 2045
10x
faster
distribution grid expansion and 4x rate of transmission expansion
Find more insights in Edison's white papers:
Reaching California's GHG goals requires near-complete transformation of energy use by 2045
More than
90%
of vehicles and buildings need to be electrified by 2045
Net zero
EIX plans to reduce Scope 1, 2, and 3 emissions to net zero by 2045
See here: https://www.edison.com/clean-energy/countdown-to-2045
See here: https://www.edison.com/clean-energy/reaching-net-zero
EIX contributes to this transition through clean energy delivery, reducing operational emissions, and neutralizing remaining emissions
Disclaimer
Edison International published this content on April 28, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 11:49 UTC.